Commercial Mortgages

Bank

Conventional bank and credit union loan programs are the most common type of commercial real estate loans and offer programs for almost any type of investment property, and can provide the most flexibility for an investor

CMBS

CMBS loans are available for many different types of investment properties, including residential, commercial, industrial, and others. They normally can range from $1 million to $1 billion

Bridge

Bridge loans provide short-term financing that’s used to “bridge” a gap when acquiring or renovating properties. These loans are used by both property investors, and businesses in other industries that purchase land or buildings.

SBA 504

SBA 504 loans for commercial real estate offer business owners fixed-rate interest, long amortization and no balloon payments. Loans are up to $5 million and LTV’s can be up to 90%.

SBA 7a

SBA 7(a) commercial property loans offer business owners adjustable rate loans with up 25 year loan terms. Loans are up to $5 million and are typically full-recourse.

FNMA

Fannie Mae loans provide commercial real estate investors with long-term, fixed-rate financing at competitive rates. They are tailored for multifamily rental housing, supporting acquisition, refinancing, or redevelopment.

Freddie

Freddie Mac loans serve as a robust financing solution for multifamily investors. They offer a range of fixed and floating-rate options with varying terms, often at competitive rates. These loans are versatile, supporting activities like property acquisition, refinancing, and even renovation or redevelopment projects.

FHA/HUD

FHA/HUD loans are government-backed financial instruments specifically designed for multifamily investors. They offer long-term, fixed-rate financing with the added security of federal backing. They are well-suited for those looking to invest in stable, cash-flowing assets while mitigating risk through government assurance.

Life Insurance

Life insurance loans can fund various multifamily investments, but usually require top condition properties. These loans are typically for Grade A properties with low LTV and high DSCR.

• Home

Multifamily

• Key

Office/Retail

• Globe

Industrial

• Location

RV Park

Advantages

Simplified Process- Single Application and Closing

Efficiency: With a one time close construction loan, borrowers only need to go through the application and closing process once. This not only simplifies the overall process but also saves time and reduces stress associated with multiple loan applications.Less Paperwork: Since there is only one closing, the paperwork is significantly reduced compared to applying for separate construction and permanent loans. This makes it easier for borrowers to manage and keep track of their loan documents.

Cost Savings-Lower Closing Costs

Single Set of Fees: Since there is only one closing, borrowers save on closing costs that would otherwise be incurred twice with separate loans. These costs can include lender fees, attorney fees, appraisal fees, and other closing expenses.Reduced Interest: During the construction phase, interest is typically charged only on the funds drawn, which can result in lower interest payments compared to a traditional construction loan where interest might be charged on the entire loan amount from the start.Interest Rate Protection: Borrowers can lock in their interest rate for the permanent mortgage at the beginning of the loan process. This protects them from potential interest rate increases during the construction period, providing peace of mind and financial stability.

Financial Flexibility

Interest-Only Payments During Construction

Cash Flow Management: During the construction phase, borrowers usually make interest-only payments on the funds that have been drawn. This can help manage cash flow more effectively, as the payments are typically lower compared to full principal and interest payments.Reduced Financial Strain: By paying only the interest on the drawn funds, borrowers can focus their financial resources on other aspects of the construction project, reducing the overall financial strain during the building period.

Convenience and Predictability- Streamlined Communication

Single Point of Contact: Borrowers have a single point of contact with their lender throughout the entire process, from the initial application to the final mortgage conversion. This ensures consistent communication and reduces the potential for misunderstandings or delays.Predictable Terms: With a one time close construction loan, the terms of the loan are set at the beginning, providing borrowers with predictable monthly payments and clear financial expectations once the construction is complete.Guaranteed Financing: Since the construction and permanent financing are combined into one loan, borrowers are assured that the funding for the entire project is secured. This reduces the risk of financing-related delays that could disrupt the construction timeline.